HomeMy WebLinkAbout11 TLLD LEVY FY 08/09 05-06-08AGENDA REPORT
MEETING DATE: MAY 6, 2008
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
SUBJECT: TUSTIN LANDSCAPE AND LIGHTING DISTRICT LEVY OF ANNUAL
ASSESSMENTS FOR FISCAL YEAR 2008-2009
SUMMARY
The City Council, at their meeting of February 5, 2008, adopted Resolution No. 08-15, which
ordered the preparation of an Engineer's Report for the Levy of Annual Assessments for the
Tustin Landscape and Lighting District. The Engineer's Report has now been completed and
consideration of the following actions is now appropriate:
• Adoption of Resolution No. 08-33 approves the Engineer's Report for Fiscal Year 2008-
2009.
• Adoption of Resolution No. 08-34 declares the City Council's intention to levy annual
assessments for Fiscal Year 2008-2009 and set a public hearing for June 17, 2008.
RECOMMENDATION
It is recommended that the City Council adopt the following resolutions:
• Resolution No. 08-33 approving the Engineer's Report for the Tustin Landscape and
Lighting District Levy of Annual Assessments for Fiscal Year 2008-2009; and
• Resolution No. 08-34 declares its intention to levy annual assessments for Fiscal Year
2008-2009 and setting a public hearing for June 17, 2008.
FISCAL IMPACT
The landscape maintenance and public street lighting expenses within the Tustin Ranch area
should be recovered through the levy of the annual assessments for the District. However, in
order to meet the district's budget needs, the City may contribute as much as $144,170 from other
sources in Fiscal Year 2008-2009. In comparison, the Fiscal Year 2007-2008 budget included a
surplus of $177,415, which was entirely expended resulting in a projected ending fund balance
deficit of $12,293. The City's proposed assessment on parkland within the District is $8,699.60
and will be paid through the City's Fiscal Year 2008-2009 property tax expense fund.
BACKGROUND
The District was formed on July 15, 1985 to install and maintain certain street lighting and
landscaping in the area generally bounded by Browning Avenue, Irvine Boulevard, Jamboree
Road (formerly Myford Road) and the I-5 Freeway within the City of Tustin.
Tustin Landscape and Lighting District Levy of Annual Assessments for Fiscal Year 2008-2009
May 6, 2008
Page 2
Assessments for the benefiting property were confirmed for the first fiscal year, 1985-1986, and
each fiscal year thereafter. As property developed in the Tustin Ranch area, such development
was required to annex to the District.
As a result of procedures required by the passage of Proposition 218 on the November 1996
Statewide ballot, which added Article XIID to the State Constitution, the City re-analyzed the
District regarding the special benefits associated with the improvements for each property in the
District, commencing with Fiscal Year 1997-1998. Notices and ballots to approve the
assessment including future adjustments based on increases in the Consumer Price Index
(CPI) were mailed in the spring of 1997 to all property owners in the District. Subsequently, at
the conclusion of a public hearing on July 7, 1997, the majority of returned ballots, weighted by
assessed amount, approved the annual assessments.
Based on the results of the ballot proceedings, the base assessment rate for Fiscal Year 1997-
1998 may be increased in subsequent years by no more than the increase in the CPI for all
urban consumers for the Los Angeles, Anaheim, and Riverside area. The percentage increase
in the CPl.for calendar year 2007 is 4.2%. The District's budget for Fiscal Year 2008-2009 has
been increased per the maximum allowed by Proposition 218 to offset anticipated increases in
operating expenses.
Each year the City estimates the cost to provide the street lighting and landscape maintenance
services in the Tustin Ranch area. This total cost is divided among the parcels on a
proportionate share, based on a report prepared by consultant engineers. The precise method
used to establish each parcel's special benefit may vary according to land usage and benefit
area, but similar parcels with equal benefit from the District pay equal assessments.
There are 5,704 parcels within the District for Fiscal Year 2008-2009, which is slightly greater than
the number of parcels for Fiscal Year 2007-2008 due to newly recorded maps and assigned
parcels.
The District includes three separate benefit areas based upon the special benefits received.
• Benefit Area "A" - Properties located in Benefit Area "A" pay only for Arterial and Collector
Street Lighting (ACCT).
• Benefit Area "B" - Properties located in Benefit Area "B" pay for Arterial and Collector Street
Lighting, plus Parkway, Slope, and Trail Landscaping (ACCT + PSTL).
• Benefit Area "C" - Properties located in Benefit Area "C" pay for Arterial and Collector
Street Lighting, plus Parkway, Slope, Trail Landscaping, plus Local
Residential Street Lighting (ACCT + PSTL + LRLT). Those parcels that
pay for local residential street lighting are located within the residential
tracts that have public streets.
Tustin Landscape and Lighting District Levy of Annual Assessments for Fiscal Year 2008-2009
May 6, 2008
Page 3
Typically, owners of single-family residential parcels in each area pay an equal share. The
proposed assessments to be paid by single family residential parcels in each of the following
benefit areas are:
• Benefit Area «A„ (ACLT) ...................................................................... $10.82 per year
• Benefit Area "B" (ACCT +PSTL) ........................................................ $70.30 per year
• Benefit Area "C" (ACCT +PSTL +LRLT) ........................................... $97.18 per year
The total costs to be assessed for lighting and landscape maintenance for Fiscal Year 2008-2009
are $102,921.00 and $457,426.00, respectively, for a total operating and maintenance
assessment of $560,347.00.
The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and
contains the following proposed levy of assessments for Fiscal Year 2008-2009 along with a
comparable listing to last year's assessment.
ASSESSMENT RATE SUMMARY BY LAND USE
FY 2007-08 FY 2008-09
BENEFIT AREA: A B C A B C
ACCT + ACCT +PSTL ACCT + ACCT +PSTL
LAND USE ACCT PSTL +LRLT ACCT PSTL +LRLT
Single Family Res. ($/Dwelling Unit) $67.47 / DU $93.70 / DU $70.30 / DU $97.18 / DU
Multi-family Res. ($/Dwelling Unit) $50.60 / DU $52.73 / DU
Non-Residential ($/ac) $404.82 / ac $421.80 / ac
Non-Res -Tustin Market Place ($/ac) $58.74 / ac $64.92 / ac
Golf Course ($/ac) $269.88 / ac $281.20 / ac
Vacant and Parks ($/ac $134.94 / ac $140.60 / ac
Tustin Landscape and Lighting District Levy of Annual Assessments for Fiscal Year 2008-2009
May 6, 2008
Page 4
CONCLUSION
The two attached resolutions require adoption by the City Council. These resolutions provide
for the following:
• Resolution No. 08-33 approves the Engineer's Report for the Tustin Landscape and
Lighting District Levy of Annual Assessments for Fiscal Year 2008-2009.
• Resolution No. 08-34 declares the City Council's intention to provide for an annual levy of
assessment for the Tustin Landscape and Lighting District to levy and collect assessments
pursuant to the Landscape and Lighting Act of 1972. Resolution No. 08-34 also sets the
date, time, and place for a public hearing concerning the annual levy of assessment for the
District. The hearing is scheduled for Tuesday, June 17, 2008 at 7:00 p.m. in the City
Council Chambers, 300 Centennial Way, Tustin, California.
Tim D. Serlet
Director of Public Works/City Engineer
Dana R. Kasdan
Engineering Services Manager
S:\City Council Items\2008 Council Items\PH for TL&LD 08-09 &Reso 08-33 &Reso 08-34.doc
Attachments: Resolution No. 08-33 and No. 08-34
Engineer's Report for Tustin Landscape and Lighting District, Fiscal Year 2008-2009
RESOLUTION NO. 08-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA APPROVING THE ENGINEER'S REPORT FOR THE
TUSTIN LANDSCAPE AND LIGHTING DISTRICT LEVY OF ANNUAL
ASSESSMENTS FOR FISCAL YEAR 2008-2009
WHEREAS, by Resolution No. 08-15, the City Council initiated proceedings for
the 2008-2009 Fiscal Year for the levy of annual assessments and ordered the
Engineer to prepare a report in accordance with Section 22565 of the State of California
Streets and Highways Code and Proposition 218; and
WHEREAS, pursuant to said Resolution, the Engineer has filed the report with
the City Clerk; and
WHEREAS, the City Clerk has submitted the report to the City Council and the
City Council now has reviewed and examined the report as so submitted.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin
that it determines and orders as follows:
Section 1: That the report entitled "Engineer's Report for Tustin Landscape and
Lighting District, Fiscal Year 2008-09" prepared by the Engineer, Harris & Associates,
dated April 18, 2008, including description of improvement, estimated costs and
diagram, as filed with the City Clerk, is hereby approved.
Section 2: A copy of this report shall remain on file in the office of the City Clerk.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 6t" day of May 2008.
Jerry Amante, Mayor
ATTEST:
City Clerk
RESOLUTION 08-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL
LEVY OF ASSESSMENT FOR FISCAL YEAR 2008-2009 FOR THE
IMPROVEMENT, MAINTENANCE AND SERVICING OF PUBLIC LANDSCAPING
AND LIGHTING FACILITIES IN THE TUSTIN RANCH AREA WITHIN THE
BOUNDARIES OF THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT AND TO
LEVY AND COLLECT ASSESSMENTS PURSUANT TO THE LANDSCAPING
AND LIGHTING ACT OF 1972 AND PROPOSITION 218 AND GIVING NOTICE
THEREOF
WHEREAS, the City Council by Resolution No. 08-15 initiated proceedings for the
annual levy of assessments for the Tustin Landscape and Lighting District pursuant to
the provisions of the Landscaping and Lighting Act of 1972 (Part 2, Division 15 of the
California Streets and Highways Code) as amended and Proposition 218; and
WHEREAS, by said Resolution No. 08-15, the City Council ordered the City
Engineer to prepare a report pursuant to Section 22565 of said Code and Proposition
218; and
WHEREAS, the City Engineer did prepare and file such a report and it was
approved by the City Council on the 6th day of May 2008, with the passage and
adoption of Resolution No. 08-33.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin
that it determines and orders as follows:
Section 1: That the public interest and convenience require and it is the intention of
the City Council of the City of Tustin to order the annual levy of assessments for Fiscal
Year 2008-2009 and to levy and collect said assessments pursuant to the provision of
said Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of said Streets and
Highways Code) as amended and Proposition 218.
Section 2: That the improvements to be undertaken consist of the installation,
maintenance, servicing and operations of those certain public landscaping and lighting
facilities located within the Tustin Landscape and Lighting District. The Assessment
District designated as Tustin Landscape and Lighting District generally encompasses
the portion of the City known as East Tustin, being north of the I-5 Freeway and east of
Browning Avenue except the areas of all public streets, avenues, lanes, alleys, and
rights-of-way provided, however, notwithstanding property owned by the railroad and
public utility companies not used for public purposes shall be included in the district and
not be excluded pursuant to the aforesaid exceptions.
Resolution 08-34
May 6, 2008
Page 2
Section 3: That reference is hereby made to the Engineer's Report on file with the
City Clerk and open to inspection for a fully detailed description of the improvements,
the boundaries of the Assessment District and any areas therein, and the proposed
assessments upon assessable lots and parcels of land within the District.
Section 4: That said proposed maintenance, servicing and operation of landscaping
and lighting, in the opinion of the City Council of the City of Tustin will be to the benefit
of the property lying within the described boundaries of the Assessment District as said
Assessment District is described and defined in said Engineer's Report.
Section 5: Notice is hereby given that Tuesday, June 17, 2008, at the hour of 7:00
p.m. in the Tustin City Council Chambers, 300 Centennial Way, Tustin, California 92780
is hereby fixed as the time and place where all interested persons may appear before
the City Council and be heard concerning the annual levy of assessments of the District,
and extent of the District, the services to be performed, and the proposed assessment
and all other matters relating thereto.
Protests must be in writing and must be filed with the City Clerk prior to the conclusion
of-the hearing. Any such protest shall state all grounds of the objection and, if filed by
the property owner, shall contain a description sufficient to identify the property.
Section 6: The City Clerk shall cause notice of the hearing to be given by causing
the Resolution of Intention to be posted and published in the manner required by Part 2
of Division 15 of the Streets and Highways Code.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 6th day of May 2008.
Jerry Amante, Mayor
ATTEST:
City Clerk